RE:RE:It's Simple Math PeopleCardboard1 wrote: Very important IMO to read Bennett Jones letter in the 2nd receiver report and response from Norton Rose.
It seems that all reasonable options to get better value were pursued by the Ad Hoc and its advisors:
1) Different sales agents or more than the original one and proper sale incentive fee structure. Who do you think know best how these things are run? Investment banker or the lawyer?
2) Point d) from Bennett Jones and response under 5) from Norton Rose. If you cannot discuss with interested parties for some of the assets, how can you propose a restructuring bid? The SISP was designed to sell the whole thing en bloc. The banks hired the receiver and considered themselves the only economic stakeholder per their affidavit. Forget also about a credit bid.
3) With #1 improved and #2 blocked, you can mostly only seek to attract better bids. Once again investment banker or lawyer? 30 bids with 9 en bloc at Phase 1 deadline with 7 retained for phase 2.
And remember that the investment banker is getting nothing unless better than Reignwood per the affidavit after how many already sunk hours during the Reignwood saga? So that is proper incentive but, of course if the end result is a big win, it is more expensive than someone paid hourly with an initial retainer. And then again, the size of the win should be further improved with further involvement.
And based on the estimated range with claims process or gathering still to be done, it seems that there is a lot of work left and money on the table:
https://finance.yahoo.com/news/twin-butte-energy-debentureholders-seek-161600721.html
Cardboard
Rebuttal:
All reasonable options were pursued prior to BIA . If any had been successful the Mac would have locked up their fee inside an offer. Trying to have their cake and eat it too.
re #1. Once again Mac trying to get hired to list business through courts. Howeve receiver threw ad hock Murray a bone and added CIBC to the fees. Re "who do you think know best .... Investment banker or the lawyer?" Your right the lawyers are held more accountable ethically and legally! Then bankers.
#2 N/A once in BIA with no board.
#3 December ad hoc letter to receiver pleaded for more time for more bids to come in, delivered at 11 th hour. Where the #uck was Mac with an offer ??
Nowhere, perhaps they did a fax campaign to all former clients saying hey Tbe is for sale can we be your agent. perhaps Buyers know better what value Mac had to offer otherwise why not engage them for bid. Or did they?? Perhaps, they have already been paid for their work. And perhaps now, they try to bill or double bill multiple clients for same work behind a confidentiality NDA.
Yes, banks know better, only lawyers are More So governed by ethics and legality.
Receivers job is to obtain highest value under a distressed sale governed by rights of enforcement of lenders overseen by courts, Mac has never written letter or made application. Only Adhoc via Bennet Jones, So here's your bone. Notwithstanding, I Do Not object to Bennet Jones fees approx $200k as they may or may not have had a benefit to process as threat of additional oversight. Zero for mac